Lowe's reported better-than-expected quarterly results on Monday and said sales would improve in 2010 as demand for remodeling projects picks up. Rival Home Depot is expected to announce earnings on Tuesday before the bell. Should investors buy Home Depot’s stock ahead of the report?

Futures have drifted slightly lower. August housing starts came in in-line with expectations (though single family starts fell), but that is good news: starts have clearly bottomed in the last several months and are at their highest levels since November 2008.

Futures popped a few points as continuing claims for unemployment recorded its first weekly drop since January. While last week was a record high (about 6.8 m), this at least is a step in the right direction.

Stocks could chug higher this week, delivering that evasive Santa Claus rally, but it will all depend on whether investors are comfortable with the status of the auto-industry bailout. Plus, let's hope the Fed doesn't deliver any holiday surprises.

S&P futures are up 19 points, and while many think this is because Treasury is actively shopping the idea they will take an ownership stake in U.S. banks, bear in mind that the market now routinely swings in 20 plus point ranges in a day, and often overnight, so futures up 15 is not even unusual any more.

Cowed by the financial crisis, American consumers are pulling back on their spending, all but guaranteeing that the economic situation will get worse before it gets better, the New York Times reported.